Final answer:
To calculate the total selling expenses for February, you need to consider sales commissions, shipping expenses, miscellaneous selling expenses, and other given expenses. By applying the relevant rates and amounts, the total selling expenses amount to $209,325. The correct answer is B.
Step-by-step explanation:
In order to calculate the total selling expenses for the month of February, we need to consider the various expenses and the given information. Let's break it down:
Sales commissions: Sales revenue × Commission rate = $575,000 × 0.04 = $23,000
Shipping expenses: Sales revenue × Shipping rate = $575,000 × 0.03 = $17,250
Miscellaneous selling expenses: $2,500 + (Sales revenue × 0.005) = $2,500 + ($575,000 × 0.005) = $5,875
Total selling expenses: Sales commissions + Sales manager's salary + Advertising expenses + Shipping expenses + Miscellaneous selling expenses
= $23,000 + $80,000 + $83,700 + $17,250 + $5,875 = $209,325
Therefore, the total selling expenses for the month of February are $209,325.
After calculating each component of the selling expenses and adding them together, the total selling expenses for February are $209,325. This includes commissions, salary, advertising, shipping, and miscellaneous expenses.
To calculate the total selling expenses for February, we need to include sales commissions, the sales manager's salary, advertising expenses, shipping expenses, and miscellaneous selling expenses. Here is the breakdown:
Sales commissions = 4% of $575,000 sales = $23,000
Sales manager's salary = $80,000
Advertising expenses = $83,700
Shipping expenses = 3% of $575,000 sales = $17,250
Miscellaneous selling expenses = $2,500 + (½ of 1% of $575,000) = $2,500 + $2,875 = $5,375
Adding these expenses together:
$23,000 (commissions) + $80,000 (salary) + $83,700 (advertising) + $17,250 (shipping) + $5,375 (miscellaneous) = $209,325
Therefore, the total selling expenses for the month of February are $209,325, which corresponds to option (b).